Arizona Real Estate License Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

The correct choice indicates that an annual budget is not typically included in a property management agreement. A property management agreement is primarily focused on the operational aspects of managing a property, outlining the responsibilities and duties of the property manager, and the relationship between the property owner and the manager.

The beginning and ending date defines the duration of the management service, making it a standard component of such an agreement. Similarly, the frequency of management reports is crucial for ensuring that property owners are informed about the status and performance of their property, thus it is generally specified in the agreement. A cancellation clause is also a standard feature, providing both parties with the ability to terminate the agreement under certain conditions, which helps protect their interests.

In contrast, while budgeting is an essential part of property management, the specifics of an annual budget are often handled outside the bounds of the property management agreement. Instead, property managers typically work with the owner to create budgets based on operating needs, market conditions, and income expectations as a separate discussion or document. This is why the annual budget is seen as less integral to the agreement itself compared to other key elements, leading to its selection as the item not typically included.